Most Adani stocks rise in early trade after attempt to assuage investors

By Reuters

  • 17 Feb 2023
Credit: 123RF.com

Most Adani Group stocks rose in early trading on Friday, as the conglomerate sought to boost investor confidence after a short-seller attack wiped off billions of dollars in investor wealth. 

Adani Green Energy has a refinancing plan that the company will disclose after the fiscal year ends, an executive of the embattled Adani Group informed bondholders on a call on Thursday, sources told Reuters. 

Adani Green shares were up 3% on Friday, after losing nearly 70% since a January 24 report by US short seller Hindenburg Research. Adani Power climbed 5%, while Adani Ports and Special Economic Zone was marginally higher. 

Seven of the conglomerate's listed companies have together lost about $125 billion in market value since Hindenburg alleged the group improperly used offshore tax havens and manipulated stock, and flagged concerns over its high debt levels. 

Adani Group has rejected the concerns and denied any wrongdoing. 

The Economic Times reported on Friday that Adani Group also plans to completely pre-pay all loans against shares over the next 20 days to ensure that borrowings are not linked to the value of the shares after the debt repayment. 

Adani Group did not immediately respond to Reuters' request for comment on the report. 

Avinash Gorakshakar, head of research at Profitmart Securities, said the refinancing plans were positive for sentiment, but the group's stocks would continue to remain volatile. 

"What we'll need to know is how they are going to fund their future growth plans. Fresh funding is not going to come easy," he said. 

Adani Green Energy bonds due in 2024 and offering a 4.375% coupon jumped on Thursday to 84.5 cents on the dollar from 75 cents a day earlier, according to Tradeweb data. 

Adani Group's flagship firm, Adani Enterprises, was 1.5% lower on Friday, while Adani Total Gas shares, which have been hit the hardest by the report, were down nearly 4%.